This blog is mainly about the spectacular train wreck at The Sacramento Bee and its parent company, the McClatchy Company. But I also post about current events, the Iraq and Afghanistan wars, politics, anything else that grabs my attention. Take a look around this blog, hope you enjoy it.

Friday, October 3, 2008

Uh oh!... McClatchy's debt restructuring will cost the company an extra $1 million a week than it expected just a week earlier

McClatchy’s debt is based on the London Interbank Offered Rate (LIBOR), which is the rate at which the world’s most preferred borrowers are able to borrow money. The LIBOR climbed to an all-time high of 6.88% this week, which Duncan estimates will cost McClatchy at least $1 million a week more in debt service payments than it expected just a week ago. The same dynamic applies to any other publisher looking to relieve debt loads. Restructuring will only force those costs further upward.

3 comments:

I have been reading your blog and two things jumped out at me. I was shocked to find out that they are rehiring for positions that were cut.

1. Howard W had nothing to say about the Advertising department at the KC STAR NOW HIRING and thousands of GOOD EMPLOYEES McClatchy has lost their jobs because of poor managment and can't even be hired in as part time help or at lower pay..

2. Why is it that your former employees are treated this way? Why is that after their buyout has expired and they are not longer getting paid they CAN"T EVEN reapply for one of the jobs your advertising for? I' m sure it would be for less pay and all benefits would be starting over. Tell us Howard Why do the the Mc Clatchy unemployed with no pay, no insurance mean nothing to you?

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